After a term of 23 days, a loan at 10.5% has a maturity value of $785.16. What was the principal value of the loan?

Maturity Value

The amount payable to an investor at the end of a fixed term, encompassing the principal and the interest earned or dividends received.

Principal Value

The original sum of money invested or loaned, prior to any earnings, interest, or loss.

Determine the primary amount of a borrowing considering the interest accrued over time and the term of the loan.

Verified Answer

Final Answer :

$780.00

Learning Objectives

Determine the primary amount of a borrowing considering the interest accrued over time and the term of the loan.